Asset and Debt Management Ratios in Bankruptcy Prediction - Evidence from India

Authors

  •   Adithi Ramesh Research Scholar, Faculty of Management Studies, Dr. M.G.R Educational and Research Institute, Chennai - 600 095
  •   C. B. Senthil Kumar Professor - HOD, Department of Commerce, Dr. M.G.R Educational and Research Institute, Chennai - 600 095.

DOI:

https://doi.org/10.17010/ijf/2018/v12i8/130744

Keywords:

asset and debt management

, bankruptcy, long term debt management, market capitalization, cash from operations

G21

, G17, G33, G32, M4

Paper Submission Date

, June 16, 2018, Paper sent back for Revision, July 18, Paper Acceptance Date, July 25, 2018

Abstract

The purpose of this paper was to attempt an evaluation of effectiveness of asset and debt management ratios as an analytical tool to predict corporate bankruptcy. Earlier, Altman (1968), Ohlson (1980), and Zmijewski (1984) analyzed the power of financial ratios in predicting bankruptcy. This study is an extension of the literature. A set of variables that acted as the best measure of asset and debt management of a corporate were investigated and multiple discriminant analysis was applied. It was found that the new model proved to be significant in predicting bankruptcy.

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Published

2018-08-01

How to Cite

Ramesh, A., & Senthil Kumar, C. B. (2018). Asset and Debt Management Ratios in Bankruptcy Prediction - Evidence from India. Indian Journal of Finance, 12(8), 50–63. https://doi.org/10.17010/ijf/2018/v12i8/130744

Issue

Volume 12, Issue 8, August 2018

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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